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I am trying to figure out what to make of the Paulson and Hillary ideas for homeowner bailouts.

The first thing is that some sort of government lead thing is going to have unintended consequences. Michael Shedlock had a good post that mentions among other things that anyone who lied to get a loan can't really come back with W-2 that shows a different number meaning that the idea will turn out to be nothing but "lip service."

The entire situation we are in now is an unintended consequence of rates being kept low for too long. Whatever they have in mind now and then whatever it is they actually end up doing will cause problems. I am not going to be the one to figure out what all the issues are ahead of time nor do I know if the problems caused will be worse then the original issue but if they actually execute a plan, watch out.

One aspect of this that also troubles me, especially after hearing what Hillary had to say, was that we need to help people who were the victim of unscrupulous lending practices yada yada. My wife and I each have family who have made catastrophically bad personal finance decisions. Much as I hate to say these family members don't get it and I doubt they ever will.

Lying about income and taking on more mortgage than can obviously be afforded ultimately falls on the borrower no matter what anyone else says along the way.

This is more about individuals making very bad decisions than it is unscrupulous anything and now we are going to bail people out to go on and make more bad decisions in the future.

I realize my stance is particularly unsympathetic.

Speaking of Hillary, I may be wrong but I am convinced she either does not understand how capitalism works or she does not believe in it, except maybe in her commodity trading account.

Just curious, how many jobs are going to be created if people making $50,000-70,000 pay $500 less in taxes and we pay for that by increasing the tax for people who actually make enough to create jobs?

The solace is that if Hillary wins she will not be able to enact a whole lot from the standpoint of very few campaign ideas ever get implemented.

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